Following the SEC’s complaint against it, Coinbase has responded with a video calling for “updates to the system”. At the same time, it shared a campaign called “Stand With Crypto” accompanied by a commemorative NFT, which aims to push the US to adopt a clear regulatory framework.
Coinbase responds to SEC complaint
Following the Securities and Exchange Commission’s (SEC) complaint against it, Coinbase and its CEO Brian Armstrong have responded publicly.
The response was minimalist, but effective, in the form of a short 40-second video with short phrases calling for an “update to the system”:
Firstly, Coinbase points out that in its public report for the first half of the year, the term “staking” appears 57 times, underlining the fact that the platform has never tried to conceal its various activities. Coinbase also points out that in 2022, it took part in 30 meetings with the SEC to obtain clarification on how to operate in compliance.
Coinbase also states that it rejects 90% of requests for assets to be traded on its exchange because they do not meet legal standards.
Next comes a footnote to illustrate the desperate need to update the country’s regulatory framework. The SEC still relies on the Howey test to determine whether an asset is a financial security or not. This test dates back to 1946.
In addition, 1 million jobs would be at risk in the United States, to the benefit of 33 jurisdictions across the globe that have already adopted clear crypto regulations.
Brian Armstrong’s point of view
For his part, Brian Armstrong was keen to point out facts that have already been highlighted in the past, notably when the SEC issued a Wells Notice to Coinbase earlier this year.
One of the important points is that at the time of the exchange’s IPO, the company’s activity was scrupulously examined by US regulators, including the SEC:
Regarding the SEC complaint against us today, we’re proud to represent the industry in court to finally get some clarity around crypto rules.
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to “come in and…– Brian Armstrong ️ (@brian_armstrong) June 6, 2023
In the absence of clear regulations, Coinbase has chosen not to list what it considers to be financial securities from its point of view. It is therefore this point of view that differs from that of the federal authority, and Brian Armstrong will defend his convictions in court:
“So if we have to go to court to get clarification, then so be it. By the way, in case it’s not obvious, the Coinbase lawsuit is very different from the others, the complaint against us is focused exclusively on what is or is not a security. And we have confidence in our facts and in the law. We will do what is necessary. “
As a side note, Coinbase shared a campaign called “Stand With Crypto,” accompanied by a free dynamic non-fungible token (NFT). The NFT takes the form of a QR code that is designed to update itself to allow holders to keep up to date with actions that can be taken to advance regulation in the U.S.
Time to StandWithCrypto ️
Join the movement for sensible crypto policy. Mint the latest NFT. Existing holders = new metadata ready for you.
https://t.co/yCGNEt8Zcn pic.twitter.com/f2JBxzkw7c
– Coinbase ️ (@coinbase) June 6, 2023
It’s true that Coinbase’s run-ins with the SEC only concern financial securities, where complaints against its competitors can be more contentious. It will therefore be fascinating to follow the court decisions in the future
